Ganfeng Lithium (01772.HK) Popular Stock Analysis Report

1. Event Background and Core Catalysts
   : The core reason Ganfeng Lithium (01772.HK) became a popular stock is the rebound in lithium prices and growing new energy demand. Lithium prices rose significantly in December 2025, and the market expects them to remain strong in 2026 [1][2]. Demand for new energy vehicles is driven by the upgrade of China’s EV efficiency standards [3], while demand for energy storage batteries is expected to grow by 55% in 2026, surpassing the 19% growth rate in the EV sector and becoming a new growth driver for lithium demand [4].

2. Price and Trading Volume Performance
   : Due to data access restrictions in the HK market, the A-share (002460.SZ) is used as a reference (the two are highly correlated). The stock has risen 97.30% year-to-date [0] and 23.91% in 3 months [0]; on December 29, 2025, it fell 2.01%, with a price range of $66.35-$68.88 and trading volume of 29.71M (average volume 85.30M) [0]. The key support level is $66.35, and the resistance level is the 52-week high of $76.19 [0].

3. Market Sentiment
   : Positive sentiment comes from optimistic long-term demand in the lithium industry (driven by EVs and energy storage) and increased holdings by institutional investors [0][4]; negative sentiment stems from concerns about a possible decline in lithium battery demand in early 2026 [5] and valuation divergences caused by the company’s recent poor profitability (PE ratio of -97.64x) [0].

1. A-H Share Price Correlation
   : Although HK share data is limited, the A-share and HK share belong to Ganfeng Lithium, with highly correlated prices, so the A-share performance can effectively reflect the company’s overall market reaction.
2. Demand Structure Change
   : Energy storage battery demand growth surpasses the EV sector, becoming an important driver of lithium demand, which may change the long-term growth logic of the lithium industry [4].
3. Profitability and Liquidity Contradiction
   : Although the company is in a high-growth sector, the current negative PE ratio and low current ratio (0.73) and quick ratio (0.46) highlight short-term profitability and liquidity pressures [0].

• Opportunities
  : Sustained rebound in lithium prices, long-term growth in EV and energy storage demand [1][2][3][4]; long-term allocation demand from institutional investors [0].
• Risks
  : Recent poor profitability (PE ratio of -97.64x) [0]; tight liquidity (low current/quick ratios) [0]; lithium price fluctuations are greatly affected by supply and demand [2]; possible demand decline in early 2026 [5]; changes in new energy policies [3].

Ganfeng Lithium (01772.HK) has become a popular stock driven by the rebound in lithium prices and new energy demand. Using the A-share as a reference, the stock has performed strongly year-to-date, but trading volume on the day was below average. Market sentiment is divided; the long-term demand outlook is optimistic, but short-term risks related to profitability, liquidity, and lithium price fluctuations need attention.